OpenAI looks to shift away from nonprofit roots and convert itself to for-profit company

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OpenAI’s history as a nonprofit research institute that also sells commercial products like ChatGPT may be coming to an end as the San Francisco company looks to more fully convert itself into a for-profit corporation accountable to shareholders.

FILE - Open AI Chief Executive Officer Sam Altman speaks at the Advancing Sustainable Development through Safe, Secure, and Trustworthy AI event on Sept. 23, 2024, in New York. FILE - Sam Altman, right, CEO of ChatGPT maker OpenAI, and Mira Murati, chief technology officer, appear at OpenAI DevDay, OpenAI’s first developer conference, on Nov. 6, 2023 in San Francisco.

While OpenAI already has a for-profit division, where most of its staff works, it is controlled by a nonprofit board of directors whose mission is to help humanity. That would change if the company converts the core of its structure to a public benefit corporation, which is a type of corporate entity that is supposed to help society as well as turn a profit.

OpenAI’s CEO Sam Altman acknowledged in public remarks Thursday that the company is thinking about restructuring but said the departures of key executives the day before weren’t related.Top AI business leaders meet with Biden administration to discuss the emerging industry’s needsSpeaking at a tech conference in Italy, Sam Altman mentioned that OpenAI has been considering an overhaul to get to the “next stage.

“But we have been thinking about ,” he added. OpenAI’s board has been considering a revamp for a year as it tries to figure out what’s needed to “get to our next stage.”“We remain focused on building AI that benefits everyone and as we’ve previously shared we’re working with our board to ensure that we’re best positioned to succeed in our mission,” it said in a written statement. “The nonprofit is core to our mission and will continue to exist.

 

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